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1NC


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1NCCompanies innovating now due to hands of ederal approach.

Haraldsson 13 Social liberal with leanings toward centrist politicshas degrees in history and philosophy (Hrafnkell,http://www.politicususa.com/2!"/#/$/big%bo&%retailers%grab%big%data%shop.html,'ig 'o& etailers )rab 'ig *ata +hat ou -eed to now +hen ou Shop, uly $ th2!"0 -1

he 3ederal rade 4ommission (340 sought public feedback on the sub5ect of facialrecognition software as far back as 2!! (3ederal rade 4ommission, 2!!0 and aletter from se6eral members of congress to the 34 in anuary 2!2, e&pressedconcerns that some companies were already employing it unbeknownst toconsumers ('arton et al, 2!20. 7n their report, the 3ederal rade 4ommission(2!20 concluded that while the potential for abuse is 6ery real, the relati6enewness of the technology o8ers the opportunity to ensure that as the

industry grows it does so in a way that benets both business andconsumer(p. 2!0.

Uncertain regulatory environments tan the economy!alston 13 9+illiam )alston holds the ;ra .


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businessesI recruitment acti6ities wanes, lowering the rate at which Krms Kll 5obs .'ythe end of 2!2, the researchers calculate, heightened policy uncertainty accounted for about two%thirds of the shift in the'e6eridge cur6e. heir bottom line: N97Ef there had been no policy uncertainty shocks, the unemployment rate would ha6e beenclose to D.BP instead of the reported #.$PNGa result that aligns remarkably well with the Stanford/4hicago teamIs conclusion.

"ow condence plunges economy into depression

#ufy 13 (?hilip, om conomics, 1ug. 2D 2!"0 http://www.romeconomics.com/what%caused%the%great%depression/SH

1 traditional 6iew is that the depression was caused by a sharp fall in QconsumerconKdenceR at the beginning of the !C"s. 'eha6ioral hypotheses in economicsposit that we are more willing to buy goods and ser6ices if we e&pect to ha6e astable income in the future, rising wealth and 5ob security. 7n !C2C, the +all Street4rash shifted e&pectations, Krstly in the @S, and then across the world as hugeproportions of peopleRs wealth were lost due to plummeting stock prices. his meantthat the a6erage person began sa6ing higher proportions of their income as a pre%cautionary measure against future uncertainty and thus reducing currentspending/consumption. his caused a fall in consumption , coupled with a fall in

housing in6estments due to a collapse in house prices . hese shocks to theeconomy were ampliKed through feedback mechanisms, such as banking collapses.

!rowth prevents nuclear warare $ history proves

+alter ussell %ead &, the Henry 1. issinger Senior 3ellow in @.S. 3oreign ?olicyat the 4ouncil on 3oreign elations, 2%=, >nly Makes ou Stronger,A he -ewepublic, http://www.tnr.com/politics/story.htmlOidB#!cbbbC%2$$#%=d$!%$B=2%C2e$"C!BfBf$Tp27f current market turmoil seriously damaged the performance and prospects of 7ndia and 4hina, the current crisis could 5oin the )reat *epression in the list of economic e6ents thatchanged history, e6en if the recessions in the +est are relati6ely short and mild. he @nited States should stand ready to assist 4hinese and 7ndian Knancial authorities on an emergencybasis%%and work 6ery hard to help both countries escape or at least weather any economic downturn. 7t may test the political will of the bama administration, but the @nited States

must a6oid a protectionist response to the economic slowdown. @.S. mo6es to limit market access for 4hinese and 7ndian producers could poison relations for years. 3orbillions of people in nuclear'armed countries to emerge from this crisis belie6ingeither that the @nited States was indi8erent to their well%being or that it hadproKted from their distress could damage @.S. foreign policy far more severelythan anymistake made by )eorge +. 'ush. 7tIs not 5ust the great powers whose tra5ectories ha6e been a8ected by the crash. Jesser powers like Saudi 1rabia and 7ran also face new constraints.

he crisis has strengthened the @.S. position in the Middle ast as falling oil prices reduce 7ranian inFuence and increase the dependence of the oil sheikdoms on @.S. protection. Successin 7raL%%howe6er late, howe6er undeser6ed, howe6er limited%%had already impro6ed the bama administrationIs prospects for addressing regional crises. -ow, the collapse in oil priceshas put the 7ranian regime on the defensi6e. he annual inFation rate rose abo6e 2C percent last September, up from about !# percent in 2#, according to 7ranIs 'ank Marka;i.conomists forecast that 7ranIs real )*? growth will drop markedly in the coming months as stagnating oil re6enues and the continued global economic downturn force the go6ernmentto rein in its e&pansionary Kscal policy. 1ll this has weakened 1hmadine5ad at home and 7ran abroad. 7ranian oUcials must balance the relati6e merits of support for allies like Hamas,He;bollah, and Syria against domestic needs, while international sanctions and other diplomatic sticks ha6e been made more painful and +estern carrots (like trade opportunities0 ha6ebecome more attracti6e. Meanwhile, Saudi 1rabia and other oil states ha6e become more dependent on the @nited States for protection against 7ran, and they ha6e fewer resources tofund religious e&tremism as they use diminished oil re6enues to support basic domestic spending and de6elopment goals. -one of this makes the Middle ast an easy target for @.S.diplomacy, but thanks in part to the economic crisis, the incoming administration has the chance to try some new ideas and to enter negotiations with 7ran (and Syria0 from a position ofenhanced strength. 6ery crisis is di8erent, but there seem to be reasons why, o6er time, Knancial crises on balance reinforce rather than undermine the world position of the leadingcapitalist countries. Since capitalism Krst emerged in early modern urope, the ability to e&ploit the ad6antages of rapid economic de6elopment has been a key factor in internationalcompetition. 4ountries that can encourage%%or at least allow and sustain%%the change, dislocation, uphea6al, and pain that capitalism often in6ol6es, while pro6iding their tumultuousmarket societies with appropriate regulatory and legal frameworks, grow swiftly. hey produce cutting%edge technologies that translate into military and economic power. hey are ableto in6est in education, making their workforces e6er more producti6e. hey typically de6elop liberal political institutions and cultural norms that 6alue, or at least tolerate, dissent andthat allow people of di8erent political and religious 6iewpoints to collaborate on a 6ast social pro5ect of moderni;ation%%and to maintain political stability in the face of accelerating socialand economic change. he 6ast producti6e capacity of leading capitalist powers gi6es them the ability to pro5ect inFuence around the world and, to some degree, to remake the world tosuit their own interests and preferences. his is what the @nited ingdom and the @nited States ha6e done in past centuries, and what other capitalist powers like 3rance, )ermany, and

apan ha6e done to a lesser e&tent. 7n these countries, the social forces that support the idea of a competiti6e market economy within an appropriately liberal legal and politicalframework are relati6ely strong. 'ut, in many other countries where capitalism rubs people the wrong way, this is not the case. n either side of the 1tlantic, for e&ample, the Jatin world

is often drawn to anti%capitalist mo6ements and rulers on both the right and the left. ussia, too, has ne6er really taken to capitalism and liberal society%%whether during the time of thec;ars, the commissars, or the post%cold war leaders who so signally failed to build a stable, open system of liberal democratic capitalism e6en as many former +arsaw ?act nations weremaking rapid transitions. ?artly as a result of these internal cultural pressures, and partly because, in much of the world, capitalism has appeared as an unwelcome interloper, imposedby foreign forces and shaped to Kt foreign rather than domestic interests and preferences, many countries are only half%heartedly capitalist. +hen crisis strikes, they are Luick to decidethat capitalism is a failure and look for alternati6es. So far, such half%hearted e&periments not only ha6e failed to workV they ha6e left the societies that ha6e tried them in a progressi6elyworse position, farther behind the front%runners as time goes by. 1rgentina has lost ground to 4hileV ussian de6elopment has fallen farther behind that of the 'altic states and 4entralurope. 3reLuently, the crisis has weakened the power of the merchants, industrialists, Knanciers, and professionals who want to de6elop a liberal capitalist society integrated into the

world. 4risis can also strengthen the hand of religious e&tremists , populist radicals, orauthoritarian traditionalistswho are determined to resist liberal capitalist society for a 6ariety of reasons. Meanwhile, the companies and banks based inthese societies are often less established and more 6ulnerable to the conseLuences of a Knancial crisis than more established Krms in wealthier societies. 1s a result, de6eloping

countries and countries where capitalism has relati6ely recent and shallow roots tend tosu8er greater economic and political damage when crisis strikes%%as, ine6itably, it does. 1nd, conseLuently,
http://www.romeconomics.com/what-caused-the-great-depression/http://www.romeconomics.com/what-caused-the-great-depression/http://www.romeconomics.com/what-caused-the-great-depression/http://www.romeconomics.com/what-caused-the-great-depression/http://www.romeconomics.com/what-caused-the-great-depression/


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Knancial crises often reinforce rather than challenge the global distribution of power and wealth. his may be happening yet again. -one of which means that we can 5ust sit back and

en5oy the recession. History may suggest that Knancial crises actually help capitalist great powers maintain their leads%%but it has other, less reassuring messages as well. 7fKnancial crises ha6e been a normal part of life during the "%year rise of the liberalcapitalist system under the 1nglophone powers, so has war. he wars of theJeague of 1ugsburg and the Spanish Succession V the Se6en ears +arV the1merican e6olutionV the -apoleonic +arsV the two +orld +ars V the cold war:he

list of wars is almost as long as the list of Knancial crises . 'ad economic times canbreed wars. urope was a pretty peaceful place in !C2$, but the *epression poisoned )erman public opinion and helped bring 1dolf Hitler to power. 7f the current crisis

turns into a depression, what rough beasts might start slouching toward Moscow, arachi, 'ei5ing, or -ew *elhi to be bornO he @nited States may not, yet, decline, but, if wecanIt get the world economy back on track, we may still ha6e to Kght. >1mericacannot turn inward ,A the bama of 2$ said in 'erlin. he bama of 2!= is now responding: >es we can.A


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%echanics


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U(


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)nnovation Now*iometrics growth increasing

"ee 1+

ustin, une !C, 2!B, biometric update, >1nalyst reports pro5ect signiKcant growth in

the global biometrics marketA http://www.biometricupdate.com/2!BD/analyst%reports%pro5ect%signiKcant%growth%in%the%global%biometrics%market

1 blog post by ?loughshare 7nno6ations o8ers a summary of recent analyst reportsaddressing the signiKcant growth of the global biometrics market o6er the ne&tdecade. MarketsandMarkets recently published a new report entitled Q-e&t)eneration 'iometrics MarketR, which pro5ects that the biometrics market willundergo a 41) of !#.C percent between 2!B and 22. his Kgure e&ceedsrecent predictions made by echSci esearch, which forecasted the globalbiometrics market to increase by != percent year%on%year between now and 22,before e6entually reaching a 6alue of W2! billion. 1dditionally, elstra recently

released a sur6ey of o6er =, )eneration X and consumers from 1ustralia,Singapore, Malaysia, 7ndonesia, Hong ong, the @S and the @, in which it foundthat the ma5ority of mobile banking app users prefer biometrics o6er passwords asan account authentication method. he same study found they these app userswould e6en be willing to share their *-1 with their banks if it meant that it wouldincrease the le6el of security and ease of access. 4onsumers also said they wouldbe willing to pay for the added security, with the respondents saying they would payY!! a year, on a6erage, if it helped protect them from the risk of a cyber%attack.

his continuous shift in attitudes towards biometric technologies has laid down thefoundation for growth in the market, lowering the barriers to go6ernments andcompanies adopting these authentication methods. his, in turn, has led toincreased in6estment in the market.


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'',-t $ )nnovationaceboo and other big businesses rely on acial recognition

/oberts 012 (e8 ohn, 3ortune Maga;ine, 2!B.0https://fortune.com/2!B/D/!#/facebook%moments%pri6acy%facial%recognition/

+hat a bad week for pri6acy. 4onsumer watchdogs ga6e up on go6ernment talkso6er facial recognition software after industry groups appeared to re5ect e6en basicrestrictions on face%scanning. Meanwhile, 3acebook rolled out a new ser6ice called>MomentsA that e&pands the use of the companyRs powerful >faceprintA technology.

his doesnRt mean the pri6acy apocalypse is upon usV for now least, the 3acebook>MomentsA tool is 5ust one more creepy%but%useful social media inno6ation. 'ut ifloss of liberty happens gradually, une of 2!B could be a watershed we look backon with regret. 7t marks a time when we took new steps towards accepting the useof our 6ery faces as a uni6ersal 7* card without deciding on the rules for using it.3acebookRs powerful, dangerous faceprint tool our face is like your Kngerprint: 7tRs aset of identifying markers that are distinct to you and, short of ma5or surgery, canRt

be erased. 7n recent years, the 3'7 and others ha6e amassed mass databases of>faceprints,A but 3acebook has the biggest, and is best at using them. (>3aceprintAis a generic term, but one that has been adopted by online dictionaries and ma5ormedia outlets0.

Companies investing and e-perimenting in biometric systems

now driven by government applications.

ain et. al. 4 $ @ni6ersity *istinguished ?rofessor in the *epartmentof 4omputer Science T ngineering at Michigan State @ni6ersity,

speciali;ing in 'iometrics (1nil ain, Jin Hong, and Sharath?ankanti4MM@-7417-S 3 H 14M 3ebruary 2/Zol. =", -o. 2C, '7M74 7*-737417-,http://citeseer&.ist.psu.edu/6iewdoc/downloadOdoi!.!.!.==#.=B#"Treprep!Ttypepdf0 -1

'iometrics is a rapidly evolving technologythat has been widely used inorensics, such as criminal identiKcation and prison security. 'iometricidentiKcation is also under serious consideration for adoption in a broad range ofci6ilian applications. %commerce and e%banking are two of the most important application areas due to therapid progress in electronic transactions. hese applications include electronic fund transfers, 1M security, check

cashing, credit card security, smartcards security, and online transactions.here are currently se6erallarge biometric security pro5ects in these areas under de6elopment, including credit cardsecurity (Master4ard0 and smartcard security (7'M and 1merican &press0. 1 6ariety of biometric technologies are

now competing to demonstrate their eUcacy in these areas.he market of physical access control iscurrently dominated by token%based technology. Howe6er, it is predicted that, withthe progress in biometric technology, market share will increasingly shit tobiometric techni5ues.7nformation system and computer%network security, such as user authentication

and access to databases 6ia remote login is another potential application area. 7t is e&pected that more andmore information systems and computer%networks will be secured with biometrics
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.447.4573&rep=rep1&type=pdfhttp://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.447.4573&rep=rep1&type=pdfhttp://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.447.4573&rep=rep1&type=pdfhttp://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.447.4573&rep=rep1&type=pdf


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with the rapid e&pansion of 7nternet and intranet. +ith the introduction ofbiometrics, go6ernment beneKts distribution programs such as welfaredisbursements will e&perience substantial sa6ings in deterring multiple claimants. 7naddition, customs and immigrationinitiati6es such as 7-S ?assenger 1ccelerated Ser6ice System(7-S?1SS0, which permits faster processing of passengers at immigration checkpoints based on hand geometry,

will greatly increase the operational eUciency. 1 biometric%based national

identiKcation system pro6ides a uniLue 7* to the citi;ens and integrates di8erentgo6ernment ser6ices. 'iometricsbased 6oter registration pre6ents 6oter fraudVandbiometrics%based dri6er registration enforces issuing only a single dri6er license to a personVand biometrics%based time/attendance monitoring systems pre6ent abuses of the current token%based manualsystems. 'iometric echnologies here are a multitude of biometric techniLues either widely used or underin6estigation. hese include,facial imaging (both optical and infrared0, hand and Knger geometry, eye%basedmethods (iris and retina0, signature, 6oice, 6ein geometry, keystroke, and Knger% and palm%print imaging. Some ofthese methods are indicated in 3igure =.

"arge increase in *iometrics $ globally.

6illis 78 9 :aul 6illis; ;%ulti %edia ournalist or CNN;http?www.cnn.com4778*U@)N,@@7870biometrics.airports

A

hough some of the technology might seem like the stu8 of science Kction fantasy(or nightmare, if you take the 6iew of many ci6il liberty campaigners0, theeconomics are 6ery real. 1ccording to a recent study by market research Krm 1'7,in6estment in biometrics will dri6e global spending in the Keld to W#." billion by2!", up from around W" billion this year. he use of biometrics (broadly deKned astechnologies that identify people 6ia physiological characteristics0 has e&pandedrapidly in recent years. 1lmost e6ery ma5or hub airport has either begun using the

technology, is trialling it or else has plans to do so . 'iometric passports are fastbecoming the norm with some countries like )ermany storing Kngerprint scans inchips on all new ones issued. 7n 'ritain, iris scanners ha6e been introduced at anumber of airports, including all K6e Heathrow erminals to allow tra6ellers tobypass normal border controls. Meanwhile, the @.S. *epartment of HomelandSecurity plans to e&tend a program to Kngerprint all foreign nationals entering thecountry. hey are trialling it at +ashingtonIs *ulles airport and plan to roll it out toall international hubs by the end of the year. he concept of biometrics has e&istedfor some time % the Krst commercial application of a Kngerprint reader dates back to!C$=. So why the sudden interestO 7t has been due in part to security concernsprompted by terrorist atrocities like the September !! attacks in -ew ork, and in

part because of ma5or ad6ances in technology.


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U( $ *usiness Condence High*usiness condence is at a post'recession high

Newswire 01& (7 'usiness -et, 2!B0. http://www.itbusinessnet.com/article/Sur6ey:%@S%43s%4onKdence%in%'usiness%eaches%?ost%ecession%High%"C=B2!SH

he N43 [uarterly utlook Sur6ey,N which polls @.S. 43s of public and pri6atebusinesses on their economic and business conKdence and e&pectations, found that43s remain conKdent in the outlook for their own companies, with the optimisminde& for their companies reaching #=.! this sur6ey, the highest reported since2D. he sur6ey also re6ealed an increase in 43sI optimism towards the globaleconomy, which climbed to B#.DC (le6els not seen since the second Luarter 2!!,and up from B".!C in 3ebruary 2!B0 on the sur6eyIs inde&. espondents re6ealed asmall decline in their optimism towards the @.S. economy to D$.!= (from #.#! in3ebruary0, but this score still remains almost four points higher than where it stoodthis time last year (D=.!#0. 1dditionally, se6eral other positi6e predictions made by43s support the o6erall conclusion that the @.S. business en6ironment is

impro6ing, including anticipated increases in net earnings (!.=#P0 and re6enue(C.!BP0 o6er the ne&t !2 months.
http://www.itbusinessnet.com/article/Survey:-US-CFOs-Confidence-in-Business-Reaches-Post-Recession-High-3945021http://www.itbusinessnet.com/article/Survey:-US-CFOs-Confidence-in-Business-Reaches-Post-Recession-High-3945021http://www.itbusinessnet.com/article/Survey:-US-CFOs-Confidence-in-Business-Reaches-Post-Recession-High-3945021http://www.itbusinessnet.com/article/Survey:-US-CFOs-Confidence-in-Business-Reaches-Post-Recession-High-3945021


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'',-t $ *usiness Condence High*usiness condence is at a pea

%utiani 0& (Jucia, euters, 2!B0. http://www.reuters.com/article/2!B/D/C/us%usa%economy%optimism%id@S'-?X=2!BDCSH

@.S. small business conKdence increased to a K6e%month high in May with ownerse&pecting a solid impro6ement in proKts, which bodes well for the economyIsprospects in the months ahead. he -ational 3ederation of 7ndependent 'usinesssaid on uesday its Small 'usiness ptimism 7nde& rose !.= points to C$.", thehighest reading since *ecember. 1bout D!D businesses took part in the sur6ey. heupbeat conKdence sur6ey added to robust May employment and automobile salesreports that ha6e suggested the economy was gaining momentum after a slow startto the second Luarter.

+ month high in


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will likely continue. he Jabor *epartment says the number of open 5obs at the end of 1pril 5umped B.2 percent to B.= million. he Kguresuggests that employers anticipate stronger customer demand in the months ahead.he 5ob market has remained healthye6en as the economy faltered at the start of 2!B. he steady hiring shows that businesses see the economicslump as ha6ing resulted mainly from temporary factors such as a harsh winter. n 3riday, the go6ernment said employers added arobust 2$, 5obs in May after a healthy gain in 1pril. 16erage hourly wages also ticked up.

*usiness condence growing'%utiani; 0&. Jucia, ahoo -ews, 2!B. >@.S. 5ob openings hit record highVsmall businesses upbeat.Ahttp://news.yahoo.com/u%wholesale%in6entories%rise%petroleum%prices%stabili;e%!=B=="2C%%business.html

@.S. 5ob openings surged to a record high in 1pril and small business conKdence perkedup in May, suggesting the economy was regaining speed after stumbling at the startof the year. he economyIs stronger tone was reinforced by other data on uesdayshowinga solid rise in wholesale in6entories in 1pril, in part as oil prices stabili;ed. Nhis is more conKrmation that the economy is indeed emerging from that soft patch in theKrst Luarter and can still pick up e6en faster in the ne&t few months,N said 4hris upkey, chief Knancial economist at M@3) @nion 'ank in -ew ork. ob openings, a measure

of labor demand, rose B.2 percent to a seasonally ad5usted B.= million in 1pril, the highest le6el since the series began in *ecember 2, the Jabor *epartment saidin its monthly ob penings and Jabor urno6er Sur6ey (JS0. Hiring slipped to B. million from B.! million in March. conomists say the lag in hiring suggests that employers cannotKnd LualiKed workers for the open positions. he number of unemployed 5ob seekers per open 5ob, a measure of labor market slack, fell to !.D in 1pril, the lowest since 2# and downfrom !.# in March. Nn balance, we read the 1pril JS data as suggesting labor market momentum remains intact in the second Luarter and labor market slack continues to diminish,Nsaid esse Hurwit;, an economist at 'arclays in -ew ork. he JS report is one of the indicators being closely watched by 3ederal eser6e policymakers as they contemplate raisinginterest rates this year. he @.S. central bank has kept the short%term lending rate near ;ero since *ecember 2$. Shel6es are stacked with merchandise at a +al%Mart Stores 7nccompany distribution center in 'enton6 \ ightening labor market conditions were corroborated by a separate report from the -ational 3ederation of 7ndependent 'usiness that showed

conKdence among small businesses rising to a K6e%month high in May.he share of businesses saying they could not Kllopen positions also increased to 2C percent last month , matching 3ebruaryIs reading, which was thehighest since 1pril 2D. he economy contracted at a .# percent annual pace in the Krst Luarter and growth got o8 to a slow start in the second Luarter,in part because of the lingering e8ects of a strong dollar and spending cuts in the energy sector. 'ut a surge in 5ob growth and automobile sales as well as gains in May factory acti6itysuggest the economy is strengthening. ?rices for @.S. go6ernment debt fell, while @.S. stock inde&es edged up. he dollar slipped against a basket of currencies. 7n a third report, the4ommerce *epartment said wholesale in6entories increased .= percent in 1pril after rising .2 percent in March. 7n6entories are a key component of gross domestic product changes.

he component of wholesale in6entories that goes into the calculation of )*? % wholesale stocks e&cluding autos % rose .2 percent, prompting economists at 'arclays to bump up theirsecond%Luarter growth estimate by one%tenth of a percentage point to a 2.C percent annuali;ed rate. Sales at wholesalers surged !.D percent in 1pril, the largest rise since March of lastyear. Sales had been weak since last 1ugust, in part due to the negati6e impact of lower oil prices on the 6alue of petroleum goods sales. hat had led to an accumulation of in6entory,lea6ing wholesalers with little appetite to buy more merchandise. ?etroleum sales 5umped =.C percent in 1pril. 1t 1prilIs sales pace it would take !.2C months to clear shel6es, down from!." months in March. 1n in6entory%to%sales ratio that high usually means an unwanted in6entory buildup, which would reLuire businesses to liLuidate stocks. hat would weigh onmanufacturing and economic growth. conomists, howe6er, caution against reading too much into the ele6ated in6entory%to%sales ratio, gi6en the role that oil prices ha6e played indepressing the 6alue of petroleum goods sales. Still, they e&pect an in6entory drawdown in the Luarters ahead, which is one of the reasons for less robust second%Luarter )*? growthestimates. 7n6entories added a third of a percentage point to Krst%Luarter )*?.


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"in $


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"in' UncertaintyCapital investment means regulatory uncertainty hurts the

economyglesias 11 9Matthew glesias is an 1merican economics 5ournalist. S?M' $, 2!!. >+here 7s he 6idence hatQegulatory @ncertaintyR Has 7ncreasedO +hat +ould *ecrease 7tOA http://thinkprogress.org/yglesias/2!!/C/$/"!=CB/where%is%

the%e6idence%that%regulatory%uncertainty%has%increased%what%would%decrease%it/ //5weidemanE

7 think this is the wrong way of conceding whatRs correct about the uncertainty talking point, and then once you understand whatRscorrect about it youRll see why itRs totally wrong as an e&planation of slow economic growth. HereRs the punchline, thoughG

uncertainty about the future course of regulation is a huge drag on economicgrowth . 7t would be substantially easier to in6est capital in producti6e enterprises ifthe state of future regulations was perfectly predictable . 'y the same token, if there were no ta&uncertainty it would be easier to in6est capital in producti6e enterprises. 'ut both of these points are subsidiary to the larger pointthat if the future were completely predictable weRd ha6e a lot more economic growth. emember in 'ack o he 3uture 77 when 'i8

uses his knowledge of the past to get richO his works on a social le6el. 7gnorance about what the future willlook like is ineUcient.
http://thinkprogress.org/yglesias/2011/09/08/314950/where-is-the-evidence-that-regulatory-uncertainty-has-increased-what-would-decrease-it/http://thinkprogress.org/yglesias/2011/09/08/314950/where-is-the-evidence-that-regulatory-uncertainty-has-increased-what-would-decrease-it/http://thinkprogress.org/yglesias/2011/09/08/314950/where-is-the-evidence-that-regulatory-uncertainty-has-increased-what-would-decrease-it/http://thinkprogress.org/yglesias/2011/09/08/314950/where-is-the-evidence-that-regulatory-uncertainty-has-increased-what-would-decrease-it/


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"in' N@the secret police of @.S. capitalism, plugging up leaks in the political dam night and day so that shareholders of @.S. companies operating in poor countries can continue en5oying therip%o8.A!here is a long history in the @nited States of o6erwhelming public opposition to new forms of electronic sur6eillance. ?olice, prosecutors, and spy agencies ha6e recurrently used public crisesGranging from the Jindberghbaby kidnapping, wars, claimed threats of organi;ed crime and terror attacks, to marshal e&panded state sur6eillance powers.2*uring the two decades preceding the C/!! terror attacks, 4ongress periodically considered de6elopinglegislation establishing rights of pri6acyV but e6en in the pre%7nternet age, corporate interests sco8ed at the need for any such protections. ?re2! critiLues of electronic%sur6eillance focused on pri6acy rights and threats toboundaries between indi6iduals, corporations, and the stateV what would later be known as metadata collection were then broadly understood as 6iolating shared notions of pri6acy, and as e&posing the sca8olding of a police state ora corporate panopticon inhabited by consumers li6ing in a )eorge ooker painting. he rapid shifts in @.S. attitudes fa6oring e&panded domestic intelligence powers following C/!! were signiKcant. 7n the summer of 2!, distrust ofthe 3'7 and other sur6eillance agencies had reached one of its highest historical le6els. *ecades of longitudinal sur6ey data collected by the ustice *epartment establish longstanding @.S. opposition to wiretapsV disappro6al le6elsFuctuated between #$ percent during the thirty years preceding 2!."'ut a *ecember 2!-ew ork imes poll suddenly found only == percent of respondents belie6ed widespread go6ernmental wiretaps >would 6iolate1mericanRs rights.A=?ublic fears in the post%C/!! period reduced concerns of historical abuses by law enforcement and intelligence agenciesV and the rapid adoption of the ?17 1ct precluded public considerations of why the ?ikeand 4hurch congressional committee Kndings had e6er established limits on intelligence agenciesR abilities to spy on 1mericans. 4oncurrent with post%C/!! sur6eillance e&pansions was the growth of the 7nternetRs ability to trackusers, collecting metadata in ways that seducti6ely helped sociali;e all to the normalcy of the loss of pri6acy. he depth of this shift in @.S. attitudes away from resisting data collection can be seen in the publicRs response in the early!CCs to news stories reporting the Jotus 4orporationRs plans to sell a comprehensi6e 4*%M database compiled by Luifa&, consisting of 1mericansR addresses and phone numbers. his news led to broad%based protests by1mericans across the country angry about in6asions of pri6acyprotests that lead to the cancellation of the product which produced results less intrusi6e than a Luick )oogle search would pro6ide today. Similarly, a broad resistancearose in 2" when 1mericans lea rned of the 'ush administrationRs secreti6e otal 7nformation 1wareness (710 program. @nder the directorship of 1dmiral ohn ?oinde&ter, 71 planned to collect metadata on millions of 1mericans,tracking mo6ements, emails, and economic transactions for use in predicti6e modeling software with hopes of anticipating terror attacks, and other illegal acts, before they occurred. 4ongress and the public were outraged at theprospect of such in6asi6e sur6eillance without warrants or meaningful 5 udicial o6ersight. hese concerns led to 71Rs termination, though as the Snowden -S1 d ocuments clarify, the -S1 now routinely engages in the 6ery acti6itiesen6isioned by 71. 3our decades ago broad public outrage followed re6elations of ?entagon, 3'7, and 471 domestic sur6eillance campaigns, as news of 47-J?, 4H1S, and a host of illegal operations were disclosed byin6estigati6e 5ournalists and later the ?ike and 4hurch 4ommittees. oday, few 1mericans appear to care about Senator *ia nne 3einsteinRs recent accusations that the 471 hacked her oUceRs computers in order to remo6e documents

her sta8 was using in in6estigations of 471 wrongdoing.B1mericans now increasingly accept in6asi6e electronic monitoring of their personal li6es. 7deologies of sur6eillance are internali;ed as shifts in consciousness embedded withinpolitical economic formations con6erge with corporate and state sur6eillance desires. he rapid e&pansion of @.S. electronic sur6eillance programs like 4arni6ore, -aruslnsight, or ?7SM is usually understood primarily as anoutgrowth of the post%C/!! terror wars. 'ut while post%C/!! security campaigns were a catalyst for these e&pansions, this growth should also be understood within the conte&t of global capital formations seeking i ncreased legibility of

potential consumers, resources, resistance, and competitors.D4 o n 6 e r g e n c e o f S t a t e a n d 4 o r p o r a t e M e t a d a t a * r e a m she past two decadesbrought an accelerated independent growth of corporate and go6ernmentalelectronic sur6eillance programs tracking metadata and compiling electronicdossiers. he -S1, 3'7, *epartment of *efense, and 471Rs metadata programsde6elopedindependently from, and with di8ering goals from, the consumer sur6eillance systems that used cookies and consumer discount cards,sniUng )mail content, compiling consumer proKles, and other means of trackingindi6idual 7nternet beha6iors for marketing purposes. ?ublic acceptance of electronic monitoring and metadata collection transpiredincrementally, with increasing acceptance of corporate%based consumer monitoring programs, and reduced resistance to go6ernmental sur6eillance. hese two sur6eillance tracks de6eloped with separate moti6ations, one for

security and the other for commerce, but both desire to make indi6iduals and groups legible for reasons of anticipation and control.he collection and use of thismetadata Knds a synchronic con6ergence of intrusions, as consumer capitalism and

a @.S. national security state lea6es1mericans 6ulnerable, and

a world open tothe probing and control by agents of

commerceand security. 1s 'ruce Schneier recently obser6ed, >sur6eillance is still the business model of the 7nternet,and e6ery one of those companies wants to access your communications and yourmetadata.A#'ut this con6ergence carries its own contradictions. ?ublic trust in (and the economic 6alue of0 cloud ser6ers, telecommunications pro6iders, email, and search engine ser6ices su8ered followingre6elations that the public statements of Zeri;on, )oogle, and others had been less than forthright in declaring their claims of not knowing about the -S1 monitoring their customers. 1 March 2!= U@< Eodaysur6ey found "$ percent ofrespondents belie6ed the -S1 6iolates their pri6acy, with distrust of 3acebook (2D percent0 surpassing e6en the 7S (!$ percent0 or )oogle (!2 percent0Gthe signiKcance of these results is that the Snowden - S1 re6elations damagedthe reputations and Knancial standing of a broad range of technology%based industries.$+ith the assistance of pri6ate 7S?s, 6arious corporations, and the -S1, our metadata is accessed under a shell game of four distinct sets oflegal authori;ations. hese allow spokespersons from corporate 7S?s and the -S1 to make misleading statements to the press about not conducting sur6eillance operations under a particular program such as 37S1, when one of theother authori;ations is being used.CSnowdenRs re6elations re6eal a world where the -S1 is dependent on pri6ate corporate ser6ices for the outsourced collection of data, and where the -S1 is increasingly reliant on corporate owneddata farms where the storage and analysis of the data occurs. 7n the neoliberal @nited States, 1ma;on and other pri6ate Krms lease massi6e cloud ser6er space to the 471, under an arrangement where it becomes a share cropper onthese scattered data farms. hese arrangements present nebulous security relationships raising Luestions of role confusion in shifting patronclient relationshipsV and whate6er resistance corporations like 1ma;on might ha6e had toassisting -S1, 471, or intelligence agencies is further compromised by relations of commerce. his creates relationships of culpability, as -orman Solomon suggests, with 1ma;onRs WD million 471 data farm contract: >if bamaorders the 471 to kill a @.S. 4iti;en, 1ma;on will be a partner in assassination.A!Such arrangements di8use complicity in ways seldom considered by consumers focused on 1ma;on ?rimeRs ability to speedily deli6er a My Jittle ?onyplay set for a brony nephewRs birthday party, not on the companyRs links to drone attacks on ?akistani wedding parties. he 7nternet de6eloped Krst as a military%communication systemV only later did it e6ol6e the commercial andrecreational uses distant from the initial intent of its ?entagon landlords. SnowdenRs re6elations re6eal how the 7nternetRs architecture, a compromised 5udiciary, and duple&ed desires of capitalism and the national security state aretoday con6erging to track our purchases, Lueries, mo6ements, associations, allegiances, and desires. he rise of e%commerce, and the soft addicti6e allure of social media, rapidly transforms @.S. economic and social formations.Shifts in the base are followed by shifts in the superstructure, and new generations of e%consumers are sociali;ed to accept phones that track mo6ements, and game systems that bring cameras into the formerly pri6ate refuges of
http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en1http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en1http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en1http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en1http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en2http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en2http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en3http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en3http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en3http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en4http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en4http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en4http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en5http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en5http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en5http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en6http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en6http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en6http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en6http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en1http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en1http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en1http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en2http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en2http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en2http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en4http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en3http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en3http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en3http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en4http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en4http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en4http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en5http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en5http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en5http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en6http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en6http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en6http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en7http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en7http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en8http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en8http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en8http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en9http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en9http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en9http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en10http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en10http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en1http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en2http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en3http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en4http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en5http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en6http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en1http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en2http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en3http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en4http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en5http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en6http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en7http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en8http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en9http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en10


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our homes, as part of a >new sur6eillance normal.A!!+e need to de6elop critical frameworks considering how -S1 and 471 sur6eillance programs articulate not only with the @nited StatesR domestic and international securityapparatus, but with current international capitalist formations. +hile secrecy shrouds our understanding of these relationships, 471 history pro6ides e&amples of some ways that intelligence operations ha6e supported and informedpast @.S. economic 6entures. +hen these historical patterns are combined with details from SnowdenRs disclosures we Knd continuities of means, moti6e, and opportunity for neoliberal abuses of state intelligence for pri6ate gains.

h e - S 1 a n d t h e ? r o m i s e o f 7 n d u s t r i a l s p i o n a g e 3ollowing SnowdenRs -S1 re6elations, se6eral foreign leaders e&pressed outrage and displeasure upon learning that the -S1 had spied on theirgo6ernments and corporations, yet there has been little consideration of the meaning of the -S1Rs industrial spying. he -S1 is not the only go6ernment%based international hacking unit spying on global competitors. 7n 4hina, theShanghai 4hinese ?eopleRs Jiberation 1rmyRs @nit D!"C$ purportedly targets @.S. corporate and go6ernment computers, with hacking campaigns supposedly seeking data pro6iding economic or strategic ad6antage to the 4hinesego6ernment or pri6ate businesses. 7sraelRs 4yber 7ntelligence @nit (known as 7S-@, or @nit $20 has been linked to se6eral political and economic hacking operations, including the Stu&net worm and a recent attack on the ]lys^e?alace. +hile many +estern analysts take for granted that such economic espionage networks e&ist elsewhere, there is little analysis of the possibility that the -S1Rs sur6eillance will be used by rogue indi6iduals or agencies seekingeconomic ad6antages. et the le6eraging of such information is a fundamental feature of market capitalism. Jast anuary, Snowden told the )erman 1* tele6ision network that there is >no Luestion that the @.S. is engaged ineconomic spying.A He e&plained that, for e&ample, >if there is information at Siemens that they think would be beneKcial to the national interests, not the national security, of the @nited States, they will go after that information andtheyRll take it.A!2Snowden did not elaborate on what is done with such economic intelligence. Snowden has released documents establishing that the -S1 targeted 3rench >politicians, business people and members of theadministration under a programme codenamed @S%C$B*A with 3rench political and Knancial interests being >targeted on a daily basis.A!"ther -S1 documents show the agency spying on Me&ican and 'ra;ilian politicians, and the+hite House authori;ed an -S1 list of sur6eillance priorities including >international trade relationsA designated as a higher priority than counterespionage in6estigations.!=Jeaked -S1 documents include materials from a May 2!2top secret presentation >used bythe-S1 to train new agents step%by%step how to access and spy upon pri6ate computer networksGthe internal networks of companies, go6ernments, Knancial institutionsGnetworks designedprecisely to protect information.A!Bne leaked -S1 ?ower?oint slide mentions the @SW!2 billion a year giant 'ra;ilian petroleum company ?etrobras with a caption that >many targets use pri6ate networks,A and as the 'ra;ilianpress analysis pointed out >?etrobras computers contain information ranging from details on upcoming commercial bidding operationsGwhich if inKltrated would gi6e a deKnite ad6antage to anyone backing a ri6al bidderGto

datasets with details on technological de6elopments, e&ploration information.A!D7n response to SnowdenRs disclosures, *irector of -ational 7ntelligence ames 4lapper admitted the -S1 collects Knancial intelligence, but claimed itwas limited to searches for terrorist Knancial networks and >early warning of international Knancial crises which could negati6ely impact the global economy.A!#7n March 2!" 4lapper lied to 4ongress, claiming that the -S1 was notcollecting >data on millions or hundreds of millions of 1mericans.A!$He has more recently claimed the -S1 does not >use our foreign intelligence capabilities to steal the trade secrets of foreign companies on behalf ofGor gi6eintelligence we collect toG@S companies to enhance their international competiti6eness or increase their bottom line.A!C6er the course of se6eral years, the -S1Rs peration Shotgiant hacked into the ser6ers of 4hinesetelecommunications giant Huawei. Shotgiant initially sought to learn about the ?eopleRs Jiberation 1rmyRs ability to monitor HuaweiRs clientRs communications, but the -S1 later installed hidden >back doorsA in HuaweiRs routers anddigital switchesGthe e&act acti6ities that the @.S. go6ernment had long warned @.S. businesses that Huawei had done.2Such operations raise the possibility of the -S1 gaining knowledge to be used for economic gain by the 471,-S1 employees, or @.S. corporations. +hen pressed on these issues, a +hite House spokesperson claimed >we do not gi6e intelligence we collect to @.S. companies to enhance their international competiti6eness or increase theirbottom line. Many countries cannot say the same.A 1fter this -S1 operation was re6ealed, Huawei senior e&ecuti6e +illiam ?lummer noted that >the irony is that e&actly what they are doing to us is what they ha6e always chargedthat the 4hinese are doing through us.A2!here are many historical e&amples of intelligence personnel using information acLuired through the course of their work for personal gain, such as selling intelligence information to anotherpower. 'ut what we need to focus upon is a Lualitati6ely di8erent phenomenon: the use of such information for corporate proKt or market speculation. 7n !C#2, while in6estigating -i&onRs presidential campaign Knance irregularities,the Senate 3oreign elations subcommittee disco6ered documents indicating that -orthrop had made a W=B, bribe to Saudi 1rabian air force generals to help secure a W# million -orthrop 3%B 5et contact. etired 471 agentim oose6elt (then running a multinational consulting Krm operating in Saudi 1rabia0 denied any in6ol6ement in these bribes, but the in6estigation unco6ered documents establishing that oose6elt used his 471 connections forKnancial gain. he Senate subcommittee e&amined correspondence from im oose6elt and -orthrop oUcials, Knding >repeated references to Qmy friends in the 471R who were keeping him posted about the mo6es of commercialri6als.A221fter the subcommittee focused its attentions on other more signiKcant instances of 471 illegal acti6ities, oose6elt faced no legal conseLuences for these acti6ities. he most rigorous study to date documentingintelligence data being used for economic gains in stock market trading was recently published by economists 1rindra5it *ube, than aplan, and Suresh -aidu. he authors de6eloped empirical measures to determine whetherclassiKed knowledge of impending 471 operations has historically been used to generate proKts in this manner.2"*ube, aplan, and -aidu recogni;ed that most regimes historically o6erthrown by 471 coups had nationali;edindustries that were once pri6ately held by international corporationsV post%coup these industries returned to the pre6ious corporate owners. herefore, foreknowledge of upcoming coups had a signiKcant Knancial 6alue in the stockmarket. he authors de6eloped a series of measures to detect whether, during past 471 coups, there were detectible patterns of stock trading taking ad6antage of classiKed intelligence directi6es, which were known only to the 471and ?resident. heir study selected only 471 coups with now declassiKed planning documents, which attempted to install new regimes, and in which the targeted pre%coup go6ernments had nationali;ed once%pri6ate multinationalindustries. hey sampled K6e of twenty%four identiKed co6ert 471 coups meeting these three criteria: 7ran (!CB"0, )uatemala (!CB=0, 4ongo (!CD!CD!0, 4uba (failed 'ay of ?igs coup, !CD!0, and 4hile (!C#"0. *aily stock returns ofcompanies that had been nationali;ed by the go6ernments targeted by 471 coups were used to compare Knancial returns before presidential coup authori;ations and after the coups. *ube, aplan, a nd -aidu found that four daysafter the authori;ation of coups their sample of stocks rapidly rose (before public awareness of these coming secret coups0: for 4ongo there was a !D.# percent increase on the day of the authori;ation, and a 22.# percent return fromthe baseline four days later. he )uatemala stocks showed a =.C percent increase upon coup authori;ation, a !D.! percent increase four days later, and 2.B percent se6en days laterV the 7ranian stocks rose #.= percent four daysafter authori;ation, !." percent se6en days later, a nd 2.2 percent si&teen days later. hey found e6idence of signiKcant economic gains occurring in the stock market, with >the relati6e percentage beneKt of the coup attributableto e& ante authori;ation e6ents, which amount to BB.P in 4hile, DD.!P in )uatemala, #2.=P in 4ongo, and $D.CP in 7ran.A2=*ube, aplan, and -aidu concluded that >pri6ate information regarding coup authori;ations and planningincreased the stock prices of e&propriated multinationals that stood to beneKt from regime change. he presence of these abnormal returns suggests that there were leaks of classiKed information to asset traders.A2B'y focusing ontrading occurring at the point of the top secret presidential authori;ations, they found that gains made from stock buys at the time of authori;ations >were three times larger in magnitude than price changes from the coupsthemsel6es.A2D7t remains unknown whether those proKting were lone indi6iduals (either 471 employees or their pro&ies0, or whether these in6estments were conducted by the 471 to generate funds for its black ops. +e do not knowhow such past measures of intelligence%insider proKteering do or do not relate to the -S1Rs present global sur6eillance operations. +hile Snowden released documents (and stated that more will be forthcoming0 indicating -S1sur6eillance of corporations around the world, we do not understand how the -S1 puts to use the intelligence they collect. 6en with these leaks the - S1 largely remains a black bo&, and our knowledge of its speciKc acti6ities arelimited. et, the ease with which a middle%le6el functionary like Snowden accessed a wealth of 6aluable intelligence data necessarily raises Luestions about how the -S1Rs massi6e data collections may be used for self%ser6ing

economic interests. *ube, aplan, and -aidu establish past insider e&ploitations of intelligence data, and with the growth of insider%cheater capitalism of the type documented in Michael JewisRs 3lash 'oys, and e&pensi6e pri6ateinside%the%beltway newsletters, there are tangible markets for the industrial espionage collected and analy;ed by the -S1 and 471 under these programs. Snowden, after all, was 5ust one of tens of thousands of people with access tothe sort of data with e&traordinary 6alue on Foor of global capitalismRs casinos. heori;ing 4apitalismRs ?er6asi6e Sur6eillance 4ulture -otions of pri6acy and sur6eillance are always culturally constructed and are embedded withineconomic and social formations of the larger society. Some centrali;ed state%socialist systems, such as the @SS or ast )ermany, de6eloped intrusi6e sur6eillance systems, an incessant and e8ecti6e theme of anti%So6ietpropaganda. he democratic%socialist formations, such as those of contemporary northern urope, ha6e laws that signiKcantly limit the forms of electronic sur6eillance and the collection of metadata, compared to 1nglo%@.S. practice.*espite the signiKcant limitations hindering analysis of the intentionally secret acti6ities of intelligence agencies operating outside of public accountability and systems of legal accountability, the documents made a6ailable bywhistleblowers like Snowden and +ikiJeaks, and knowledge of past intelligence agenciesR acti6ities, pro6ide information that can help us de6elop a useful framework for considering the uses to which these new in6asi6e electronicsur6eillance technologies can be put. +e need a theory of sur6eillance that incorporates the political economy of the @.S. national security state and the corporate interests which it ser6es and protects. Such analysis needs aneconomic foundation and a 6iew that looks beyond cultural categories separating commerce and state security systems designed to protect capital. he metadata, 6aluable pri6ate corporate data, and fruits of industrial espionagegathered under ?7SM and other -S1 programs all produce information of such a high 6alue that it seems l ikely some of it will be used in a conte&t of global capital. 7t matters little what legal restrictions are in placeV in a global, high%tech, capitalist economy such information is in6ariably commodiKed. 7t is likely to be used to: facilitate industrial or corporate sabotage operations of the sort inFicted by the Stu&net wormV steal either corporate secrets for -S1 use,or foreign corporate secrets for @.S. corporate useV make in6estments by intelligence agencies Knancing their own operationsV or secure personal Knancial gain by indi6iduals working in the intelligence sector. he rise of new in6asi6etechnologies coincides with the decline of ideological resistance to sur6eillance and the compilation of metadata. he speed of 1mericansR adoption of ideologies embracing pre6iously unthinkable le6els of corporate and statesur6eillance suggests a continued public acceptance of a new sur6eillance normal will continue to de6elop with little resistance. 7n a world where the 471 can hack the computers of Senator 3einsteinGa leader of the one of the threebranches of go6ernmentGwith impunity or lack of public outcry, it is diUcult to anticipate a deceleration in the pace at which -S1 and 471 e&pand their sur6eillance reach. o li6e a well%ad5usted life in contemporary @.S. societyreLuires the de6elopment of rapid memory ad5ustments and shifting acceptance of corporate and state intrusions into what were once protecti6e spheres of pri6ate life. Jike all things in our society, we can e&pect these intrusionswill themsel6es be increasingly stratiKed, as electronic pri6acy, or illegibility, will increasingly become a commodity a6ailable only to elites. oday, e&pensi6e technologies like )eeks?honeRs 'lackphone with enhanced ?)?encryption, or 'oeingRs self%destructing 'lack ?hone, a8ord special le6els of pri6acy for those who can pay. +hile the @nited StatesR current state of sur6eillance acceptance o8ers little immediate hope of a social mo6ement limitingcorporate or go6ernment spying, there are enough historical instances of post%crises limits being imposed on go6ernment sur6eillance to o8er some hope. 3ollowing the Second +orld +ar, many uropean nations reconKgured long%distance billing systems to not record speciKc numbers called, instead only recording billing ;onesGbecause the -a;is used phone billing records as metadata useful for identifying members of resistance mo6ements. 3ollowing the1rab Spring, unisia now reconKgures its 7nternet with a new info%packet system known as mesh networks that hinder go6ernmental monitoringGthough @S17* support for this pro5ect naturally undermines trust in this system.2#3ollowing the 4hurch and ?ike committeesR congressional in6estigations of 471 and 3'7 wrongdoing in the !C#s, the Hughes%yan 1ct brought signiKcant o6ersight and limits on these groups, limits which decayed o6er time andwhose remaining restraints were undone with the @S1 ?17 1ct. Some future crisis may well pro6ide similar opportunities to regain now lost contours of pri6acies. et hope for immediate change remains limited. 7t will be diUcultfor social reform mo6ements stri6ing to protect indi6idual pri6acy to limit state and corporate sur6eillance. odayRs sur6eillance comple& aligned with an economic base enthralled with the prospects of metadata a ppears too strongfor meaningful reforms without signiKcant shifts in larger e conomic formations. +hate6er inherent contradictions e&ist within the present sur6eillance system, and regardless of the ob5ections of pri6acy ad6ocates of the liberal leftand libertarian right, meaningful restrictions appear presently unlikely with sur6eillance formations so closely tied to the current iteration of global capitalism.

Security 1nd he conomy: +hy he @S )o6ernment 4ares More 1boutSpying n our mail han )etting ou 1 obA, 7nternational 'usiness imes,

http://www.ibtimes.com/pri6acy%security%economy%why%us%go6ernment%cares%more%about%spying%your%email%getting%you%5ob , D/2"/!B //*

arlier this month, 4astro released a report showing that the @.S. cloud%computing industry stands to lose W22billionto W"B billion during the ne&t few years %% all as a result of the -ational Security 1gencyRssur6eillance and the negati6e press associated with it. 4loud computing is no niche segment, by the way. 1ccording to the technologyresearch Krm )artner 7nc. (-S:70, the industry is e&pected to grow !$.B percent to W!"! billion thisyear. 'y 2!D, consumers will spend WD## billion on cloud ser6ices worldwide. 4learly, asi;able chunk of the tech industry is heading into the clouds, which includes e6erything from third%party email such as ahoo Mail and )mail to free software applications like )oogle*ocs. 7tRs the ne&t frontier in technology, and itRs one that 1merican companies currently dominate. 'ut that could change on a dime, 4astro warns. 'ad press about @.S. tech giants

complying with the -S1Rs ?rism program could scare consumers into going elsewhere to spendthat WD## billion. o 6isuali;e the domino e8ect that could ha6e, 4astroad6ises toimagine if pri6acy concerns had tainted Microsoft 4orp. (-1S*1[:MS305ust as +indows was
http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en11http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en11http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en11http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en12http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en13http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en13http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en14http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en14http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en14http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en15http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en15http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en15http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en15http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en16http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en16http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en16http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en17http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en17http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en17http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en18http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en18http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en19http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en19http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en20http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en20http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en20http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en21http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en21http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en21http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en22http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en22http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en22http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en23http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en23http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en23http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en24http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en24http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en24http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en25http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en25http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en26http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en26http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en26http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en27http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en27http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en27http://www.ibtimes.com/privacy-security-economy-why-us-government-cares-more-about-spying-your-email-getting-you-jobhttp://www.ibtimes.com/privacy-security-economy-why-us-government-cares-more-about-spying-your-email-getting-you-jobhttp://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en11http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en12http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en13http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en14http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en15http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en16http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en17http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en18http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en19http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en20http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en21http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en22http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en23http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en24http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en25http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en26http://monthlyreview.org/2014/07/01/the-new-surveillance-normal/#en27http://www.ibtimes.com/privacy-security-economy-why-us-government-cares-more-about-spying-your-email-getting-you-jobhttp://www.ibtimes.com/privacy-security-economy-why-us-government-cares-more-about-spying-your-email-getting-you-job


17/34

taking o8 as the dominant operating system. >7nstead of ha6ing Microsoftas one of theseleaders, thereRd be a 3rench company there, or )erman or apanese company ,A he said. >7twould 5ust be a loss to the economy and a loss to all the types of productde6elopment and inno6ation weR6e seen o6erall .A 'ut5ustthe possibility that the @.S.could lose its cloud%computing dominance should concern lawmakers far more than

it seems to be, 4astro said. ne reason he released the 773 report on the potential economic e8ects of ?rism was to spark a con6ersation that he belie6ed not enough

people are ha6ing. (He said ?resident bama fell short during a recent speech in which he 6owed sur6eillance reform.0 Sure, weR6e heard plenty about pri6acy, our ci6il rights and

debates o6er the 3ourth 1mendment. 'ut to echo ames 4ar6illeRs famous dictum, >7tRs the economy, stupid.Ahe problem is, few people reali;ethe e&tent to which snooping and the economy are linked , which is a blind spote6ident in the much%publici;ed -S1 slides that Snowden leaked to the +ashington?ost. 1ccording to one of those slides, operating costs for the ?rism program are 5ust W2 million a year .


18/34

"in' %edical /ecords

,nhanced privacy erodes business condence'

@hahid @hah anuary 40; 471DG@hahid @hah is an award'winning !overnment 4.7; Health )E; *io)E digital %edical #evice )nventor CEI with over 4+ years o technology strategy; architecture;engineering; entrepreneurship; speaing; and writing e-perience; =Ehe causes o digital patient

privacy loss in ,H/s and other health )E systems>; http://www.healthcareguy.com/2!=/!/2D/the%causes%of%digital%patient%pri6acy%loss%in%ehrs%and%other%health%it%systems/J N/H

+hile we are all somewhat disturbed by the slow erosion of pri6acy in all aspects of our digital li6es, the rather rapid loss of patient pri6acy around healthdata is especially unner6ing because healthcare is so near and dear to us all. 7n order to make sure we pro6ided some actionable intelligence during the?? discussion, 7 started the talk o8 gi6ing some of the reasons why weRre losing patient pri6acy in the hopes that it might foster inno6ators to think aboutways of slowing down ine6itable losses. 'usiness models that fa6or pri6acy loss tend to be more proKtable. *ata aggregation and homogeni;ation, resale,secondary use, and related business models tend to be Luite proKtable. he only way they will remain proKtable is to ha6e easy and unfettered (low

friction0 ways of sharing and aggregating data. 'ecauseenhanced pri6acy through opt%in processes,disclosures, and notiKcations would end up reducing data sharing and potentiallyreducing re6enues and proKt; we see that privacy loss is going to happen with inevitable rise o ,H/s. Ehe only way toimprove privacy across the digital spectrum is to realiKe that health pro6iders need to conduct business in atricky intermediary%dri6en health system with sometimes conFicting business goalslie reduction o medical errors or lower cost 9which can only come with more data sharing; not lessA. #igital patient pri6acy isimportant but there are many 6alid reasons why pri6acy is either hard or impossibleto achieve in todayLs environment. Unless we intelligently and honestly understand why we lose patient privacy we canLt really create

novel and uni5ue solutions to help curb the loss.
http://www.healthcareguy.com/2014/01/26/the-causes-of-digital-patient-privacy-loss-in-ehrs-and-other-health-it-systems/http://www.healthcareguy.com/2014/01/26/the-causes-of-digital-patient-privacy-loss-in-ehrs-and-other-health-it-systems/http://www.healthcareguy.com/2014/01/26/the-causes-of-digital-patient-privacy-loss-in-ehrs-and-other-health-it-systems/http://www.healthcareguy.com/2014/01/26/the-causes-of-digital-patient-privacy-loss-in-ehrs-and-other-health-it-systems/


19/34

"in' #rones#espite =bans> on commercial investment' drone industry

Mourishing without enorced airspace regulations.

6ilson; L1D. im, 3orbes, !/$. >*rone echnology 7n6estments: ?lace our

'ets...Ahttp://www.forbes.com/sites/artimanmanagement/2!=/!/$/drone%technology%in6estments%place%your%bets/

arly 'ets 1re n heable he drone industry start%up and emergent technology bets willshake outinto three areas. 7n the analogy of a good old%fashioned game of poker, here are the hands currently in play: 'et _!: ?ackage and cargo deli6ery: oyal 3lushGforthe house. 'et _2: 1erial obser6ation and imaging: ?air of eights 'et _": nabling technologies: ?ossible inside straightGinteresting to 1rtiman. 'et _!: *rone ?ackage *eli6ery hefreight deli6ery ma5ors(1ma;on )oogle, @?S, and 3ed&0 are de6eloping package deli6ery ser6icesusing drones.1ma;onRs Luadcopters are ine&pensi6e to purchase, simple to operate, and can land on rooftops. hese physical eUciencies bring limitations: packagepayload weights and deli6ery ranges are limited. he technology%sophisticated ?redator drones are based upon K&ed%wing designs. hese styles of drones can Fy across long distances,remain aloft for e&tended periods of time, and carry hea6y payloads. hese Fight eUciencies create issues of cost and comple&ity. ?redators are e&pensi6e to build/maintain and reLuire

runways from which to take o8 and land. -ot 6ery practical for landing on a rooftop . )oogle is in6esting in the de6elopment ofdrones that can Fy in both helicopter and K&ed%wing modes. +ill they make it workO f course. +ill it matter theymade it work for package deli6eryO hat is a bet.he scary words currently bu;;ing around the freight%deli6eryma5ors: >airspace regulationA. here is, howe6er, an interesting way to bypass the incon6enience of @.S. airspace regulations, a6oid the 311. MatternetGa start%up in Luadcopter%based package deli6eryGis building their competiti6e ad6antages through the choices of airspace in which their drones Fy. hey are also de6eloping adistributed to e&tend the distance and payload capacity of their Luadcopters. 7n this site, Matternet lists their drone Fight trial locations (two of which are in ?apua -ew )uinea and'hutan0. hese locations bring the market beneKts of under%de6eloped transportation infrastructure and unrestricted airspace regulation. 4ore issue: airspace regulation. So, how will the

package deli6ery hand play outO 7n the @.S., the answer mainly depends on the decisions made by the 311. 3or long%distance package deli6ery, the current thought is to propose the designation of >safe landing ;onesA. 1n interesting Luestion then emerges: will 3ed&, et.al, Knd themsel6esnegotiating rooftop landing rights abo6e their stores (so employees can retrie6e packages Fown in by Luadcopter/K&ed%wing hybrid drones0O 1rtimanRs call: oyal 3lushGfor the house.1ma;on, )oogle, 3ed&, and @?S will Knd a way to get airspace for drone%enabled package mo6ement. *rones, howe6er, are 5ust one element of a broader logistics business. he odds

on this hand are stacked in the houseRs fa6or and against startups succeeding. 'et _2: 1erial bser6ation and 7maginghe 311 currently bans thecommercial operation of drones in @.S. airspace. his ban has had about the samee8ect as reLuiring a -4 cab dri6er to ha6e a >medallionA so as to operate acommercial ta&i ser6ice legally. )i6en the unstoppable proliferation of drones, 7 pro5ect line%of%sight Fight regulations will be the Krst hand the 311folds on. +hen this occurs, the imaging market can de6elop without legally incon6enient restrictions. -ow, how to make money in aerial obser6ation and imagingO Start%ups can pro6ideimaging ser6ices, but gi6en the low cost of line%of%sight drones such as those manufactured in 4hinaGso can e6eryone else. he orbital micro%satellites are also packing aerialobser6ation capabilities. +ithin three to four years, satellites from Skybo&, ?lanet Jabs, and a myriad of other Krms will ha6e the technical capabilities to take pictures of anywhere on

arth 6irtually e6ery day. )i6en the low economic barriers to entry and the competition from abo6e, 7 Luestion the operating margins of companies that use drones for imaging ser6ices.et, market niches will de6elop for drones speciKcally designed to take >selKesA, pri6ate aerial images of properties, and personal e6ents (weddings, for e&ample0. 1rtimanRs call: ?air ofeights. 1n un%impressi6e hand is de6eloping in the general line%of%site imaging market. here is a start%up 6enture working to impro6e the odds already Fying: ?recisionHawk. hisaleigh, -orth 4arolina%based start%up manufactures K&ed%wing drones that collect and analy;e ground image data. hey ha6e speciKcally targeted the agriculture and emergencyresponse industries. ?recisionHawk has raised appro&imately W! million in Series ' funding. Millennium echnology Zalue ?artners led the round and was 5oined by two return backers(the 7nno6ate 7ndiana 3und and edHat co%founder 'ob oung0. 'et _": *rone enabling technologies 1rtimanRs call: ?ossible inside straight. he inno6ators in enablement technologiesmay ha6e a straight line to start%up success. JetRs play this hand out in our ne&t article: *rone 7ndustry 7n6estment: 'et n he ?icks and Sho6els.

)nvestment Mourishing now due to lac o government

regulation'

*usiness )nsider; +42/!B. >H *-S ?: Market forecasts,regulatory barriers, top 6endors, and leading commercial applications.Ahttp://www.businessinsider.com/ua6%or%commercial%drone%market%forecast%2!B%2

he fast%growing global drone industry has not sat back waiting for go6ernment

policy to be hammered out before pouring in6estmentand e8ort into opening up this all%new hardware and computingmarket. 1 growing ecosystem of drone software and hardware 6endors is alreadycatering to a long list of clientsin agriculture, land management, energy, and construction. Many of the 6endors aresmallish pri6ate companies and startups G although large defense%focusedcompanies and industrial conglomerates are beginning to in6est in dronetechnology, too.7n the most recent report from '7 7ntelligence, we take a deep di6e into the 6arious le6els of the growing global industry for commercial drones, orunmanned aerial 6ehicles (@1Zs0. his "2%page report pro6ides forecasts for the business opportunity in commercial drone technology, looks at ad6ances and persistent barriers,highlights the top business%to%business markets in terms of applications and end users, and pro6ides an e&clusi6e list of do;ens of notable companies already acti6e in the space. 3inally,it digs into the current state of @S regulation of commercial drones, recently upended by the issuing of the 3ederal 16iation 1dministrationIs draft rules for commercial drone Fights. 3ewpeople know that many companies are already authori;ed to Fy small drones commercially under a @S go6ernment Ne&emptionN program.


20/34

*usiness investment Mourishing now or drones'OLIVITO 2013

(Jonathan Olivito, JD canidate Ohio State Univ. Moritz College of Law, December 8, !"# $%e&ond the

'orth )mendment* Limiting Drone Srveillance +hrogh the Contittional -ight to nformational

/rivac&0 htt1*22moritzlaw.o.ed2tdent2gro12ol32file2!"#2"284Olivito.1df5

7n con5unction with the recent proliferation of drones operating domestically, commentators ha6e begun to recogni;e the serious potential for pri6acy in6asions posed by widespreaddrone use.=! o illuminate why drones pose such a gra6e danger to pri6acy in the @nited States, the following sections e&plore the physical capabilities, current uses, and potential uses

of drones. 1. ?hysical 4apabilities of *rones )o6ernment)gencie and binee of all varietie enviion ing drone for a

mltitde of 1r1oe. Drone can erve in ch a broad r ange of fnction 1reciel& becae of the diverit& of drone ize and deign.6 Com1lementing the diverit&

of drone deign are the m&riad enor, camera, and other rveillance e7i1ment that o1erator can

intall on drone. Drone var& in ize from t he miniatre to the gargantan. Mearing .9 inche and weighing in at nineteen gram, )ero:ironment; not, and remain airborne withot refeling for an&where from thirt&4five hor to for da&.6? Small drone en3o& tealth and maneverabilit&, ma>ing them ideal for r ban rveillance o1eration.68 %ecae man& mall drone

o1erate on electricit&, the& 1rodce ver& litt le noie.6@ )dditionall&,the relativel& low criing 1eed of mall drone 1ermit them to loiter

over a rveillance target for eAtended 1eriod of time .9! Some drone do not ever need to lo iter,a certain drone deign 1ermit

the aircraft to both hover and fl& normall&.9" n order to eAtend flight time, other drone engage in $1erch4and4tare0

rveillance.9 Mot 1ertinent to 1rivac& concern, drone can be e7i11ed with a wide variet& of

rveillance e7i1ment.9# 4i6ilian operators can easily install cameras and recorders with high%powered ;oom lenses on drones. 4ertain cameras ha6e beende6eloped speciKcally for ci6ilian @1S use. he gimbal camera, for e&ample, automatically remains focused on a single ob5ect e6en as the drone continues on its Fight path.B= Moreworrisome to pri6acy ad6ocates, drones can be eLuipped with infrared and ultra6iolet imaging de6ices,BB seethrough imaging (radar technology0,BD and distributed 6ideo systems.B#*rones engaged in perch%and%stare sur6eillance might also utili;e acoustical ea6esdropping de6ices, such as con6entional microphones or laser optical microphones.B$ 7n terms ofsoftware, drones operating in the near future will likely utili;e 6ideo processing systems, including face and body recognition technology.BC 3inally, ci6ilian drones, like their militarycounterparts, can carry weaponry. 1lthough lethal weapons are almost certainly out of the Luestion, law enforcement drones might soon pack rubber bullets and tear gas.D aking fullad6antage of drone capabilities, domestic users ha6e already put drones to work in a 6ariety of capacities. 1lthough domestic drones ha6e numerous beneKcial applications, they alsocarry the potential for abuse. &acerbating this concern, go6ernment agencies and pri6ate operators intend to employ drones for so many purposes that drones will someday form aubiLuitous part of life. 6en in the immediate future, howe6er, targeted and inad6ertent @1S sur6eillance poses a threat to pri6acy.


21/34

"in ' /E)nvestment is driven by perception o increased interest in

biometric technology $ plan stiMes that.

reag 1+ Zisiting 1ssistant ?rofessor, @ni6ersity of 1ri;ona ames .

ogers 4ollege of Jaw (ason, )7-) J41J: H 31)M-17- 3 )-74S@Z7JJ1-4 'oston @ni6ersity Jaw e6iew (3orthcoming ctober 2!B0, p. !D%#0-1

?ri6ate Krms ha6e Luickly recogni;ed business opportunities in law enforcementRsincreased use of local databases. hese opportunities are dri6en by the potential foran increased demand or #N< processing; as law enforcement agencies seek touse *-1 to in6estigate high%6olume property crimes, and the possibility of sellingdatabase infrastructure to these agencies. 1s discussed below, this pri6ate sectorde6elopment is a necessary ingredient to the continued e-pansion o local#N< databases. 3or e&ample, ?alm 'ayRs and 'ensalemRs programs could not e&istwithout partnerships with pri6ate *-1 laboratories, because each locality lacks itsown *-1 laboratory.1nd, while the 1ri;ona *epartment of ?ublic Safety operates the stateRs crimelaboratory, its pri6ate, non%4*7S database is powered by Small?ondRs software and apid *-1 processers from7ntegenX. he interest in the local database market from rchid 4ellmark and 'ode echnology, two of the largestpri6ate *-1 laboratories, is an indication of the si;e of the market. 'odeRs Zice ?resident for Sales and Marketingcharacteri;ed the market as >enormous.A#= He e&plained that 'ode has identiKed up to !, law enforcementagencies in localities that do not ha6e their own law enforcement crime laboratories yet are large enough to 5ustifybuilding their own local databases.#B *r. Jaura )ahn, the laboratory director for 4ellmark 3orensics, also sees thebusiness opportunity, emphasi;ing that the creation of local databases will dri6e the demand for 4ellmarkRs forensic

*-1 processing ser6ices.#D 1s she e&plained, e6en ten years ago it was not economicallyfeasible for most law enforcement agencies to use *-1 analysis to in6estigateroutine property crimes, but that is no longer the case.## She added that, gi6en the rateof property crime in the @nited StatesGincluding an estimated !C.D million property crimes in 2!2#$G4ellmarkRs ability to o8er local database ser6ices can ser6e as an entry point tothe market for forensic *-1 processing for property crimes.#C

*usinesses need acial recognition sotware as is; wonLt agree

to the plan.

,ggerton 01+ ohn, 'roadcasting 4able, 2!B. >4onsumer )roups pt ut of 3acialecognition alksA. http://www.broadcastingcable.com/news/washington/consumer%groups%opt%out%facial%recognition%talks/!=!#D$SH

4onsumer groups are pulling out of an -71%led multistakeholder process to comeup with a 6oluntary code of conduct on facial recognition technology, saying theydonIt see a way that the process will result in adeLuate protections. he groups are

particularly concerned with what they see as an inability of the industrystakeholders to agree to any 6ariation on an opt%in model, but also say theirwithdrawal should be taken as a signal to ree6aluate the e8ecti6eness of themultistakeholder process in general. 1ccording to a letter to -71 being sent

uesday, the groups spelled out their disa8ection with the meetings.
http://www.broadcastingcable.com/news/washington/consumer-groups-opt-out-facial-recognition-talks/141768http://www.broadcastingcable.com/news/washington/consumer-groups-opt-out-facial-recognition-talks/141768http://www.broadcastingcable.com/news/washington/consumer-groups-opt-out-facial-recognition-talks/141768http://www.broadcastingcable.com/news/washington/consumer-groups-opt-out-facial-recognition-talks/141768


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acial recognition is ey or business innovation; acebooLs

%oments proves

Constine 01+ (osh, ech 4runch, 2!B.0 http://techcrunch.com/2!B/D/!B/facial%recogbook/SH

3rustrated with friends who take photos of you, say theyRll pass them on, but ne6erdoO 3acebookRs newest companion app Moments could retrie6e your memoriestrapped on other peopleRs phones through facial recognition. Moments scans your4amera oll for the all the photos featuring a friendRs face, and bundles them up forone%tap pri6ate sharing with that friend. hey can contribute to the collaborati6epri6ate album too, so all your pals from the party or 6acation can get each otherRspics. Moments launches today in the @S as a companion app to 3acebook andMessenger on iS and 1ndroid (those links will be li6e soon if not already0. 7f it goes6iral, it could be the end of e6eryone insisting to take that big group photo on theirphone too.

/egulating acial recognition collapses maret growth'

Chaya; L1D. yle, -ewsweek, =/2B. >'iometric Sur6eillance Means Someone 7s1lways +atching.A Small 'usiness Success ?owers urconomyA, https://www.uschamber.com/blog/small%business%success%powers%our%economyE-H

esearch by analysts at )allup unco6ers some troubling trends about entrepreneurship in 1merica. 3or the Krsttime in "B years, more 1merican businesses are being shuttered than started. he @nited States has slipped to !2thplace among de6eloped nations for business creation. *espite the grim statistics, many @.S. small businesses ofe6ery kind%%from scrappy startups to multigenerational Main Street K&tures%%manage to o6ercome obstacles andlong odds to sur6i6e and thri6e in a challenging en6ironment. hey push back against headwinds like higher ta&es,stricter regulations, and greater uncertainty and emerge stronger than e6er%%putting people to work and makingpositi6e contributions to their communities. 'ut if +ashington continues to get in the way, that will spell real troublefor our economy. -ow, more than e6er, it is crucial that we build on their successes and re6erse the trend ofdeclining startups by taking steps to foster a culture of entrepreneurship. 3irst, we must preser6e the right to takerisks. Zirtually all successful businesspeople ha6e taken a reasonable risk at some point, and many failed along the

way but kept trying. 7f we eliminate the right to take risks, then weIll e&tinguish the entrepreneurial spirit of ourcountry. 1merica has ne6er been about playing it safe. Second, we can Kght for the right policies in +ashington.

he go6ernment should be helping businesses, not interfering. hey should be creating the right conditions forbusinesses to prosper. he @.S. 4hamber is pushing our lawmakers to keep ta&es low, regulations reasonable,foreign markets open, roads and bridges adeLuately funded, and students well educated. hird, we must protectthe right of business to participate in the policy and political processes. 1t a time when +ashington is increasinglyin6ol6ed in the a8airs of business, there is a mo6ement seeking to silence the 6oice of business in the debate. 1ll1mericans should be able to 6oice their opinions, e6en unpopular ones, in the public sphere and petition thego6ernment without fear, intimidation, or undue regulation. 3inally, we must celebrate the success of 1mericaIs

small businesses%%we need it` @uccessul businesses drive stronger economic
http://www.sundaytimes.lk/111211/Columns/eco.htmlhttp://www.sundaytimes.lk/111211/Columns/eco.htmlhttp://www.sundaytimes.lk/111211/Columns/eco.htmlhttp://www.sundaytimes.lk/111211/Columns/eco.html


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growth and create more Pobs. Ehey eep the


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economy could sink into another recession. herefore, it is imperati6e that in6estorconKdence is restored Luickly.

#rop in business condence will plague the economy

@almond 1D (ob, Sep. ! 2!=0. 4 of ?olity, and analytics and communicationsKrm. http://robsalmond.com/sites/default/Kles/SalmondP2workingP2paperP2('usinessP24onKdence0.pdfSH

7n terms of the causal impact of business conKdence on the economy, Santero and+esterlundRs empirical analysis also found that business conKdence measures>)ranger causedA changes in economic output. )ranger causation is a measure ofcorrelation rather than causation testing whether 6ariable 1 (in this case businessconKdence0 pro6ides additional information about the future 6alue of 6ariable '(here )*? growth0 beyond the information contained in 6ariable 'Rs own history.+hile this empirical result is interesting, it does not pro6ide any theory unde

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